Skip Ribbon Commands
Skip to main content
Sign In

Complying with standards

A number of national and international standards provide guidance for the audit team leader when conducting assurance or verification engagements set out in this handbook.

Audit team leaders must ensure that audits are carried out and reported on in compliance with all relevant audit standards set by the Australian Auditing and Assurance Standards Board. Section 2.5(c) of the NGER Audit Determination states that this includes ASAE 3000. Depending on the subject matter of the audit, auditors may need to apply ASAE 3100, ASAE 3410 and ASAE 3450.

ASAE 3000

Australian Standard on Assurance Engagements (ASAE) 3000 Assurance Engagements Other Than Audits or Reviews of Historical Financial Information is applicable to all assurance engagements covered by this handbook. This standard deals with all assurance engagements other than audits or reviews of historical financial information.

It is expected that all assurance engagements under schemes administered by the Clean Energy Regulator (including ERF, NGER, RET and safeguard audits) adhere to ASAE 3000.

To comply with ASAE 3000, audit team leaders must apply, in the conduct of their audits, the quality control standard ASQC 1 Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, and Other Assurance Engagements, as well as any specific ASAEs relevant to the engagement.

For guidance on how to apply ASQC 1, please refer to section 4.4.1 of this handbook.

ASAE 3100

Australian Standard on Assurance Engagements (ASAE) 3100 Compliance Engagements is applicable to assurance engagements of compliance with scheme and legislative requirements. This standard establishes requirements for the conduct of and reporting on assurance engagements in compliance.

When undertaking compliance engagements, auditors should comply with this standard. Auditors undertaking ERF audits and audits initiated by the Clean Energy Regulator will often need to apply this standard. It may also be relevant when undertaking some voluntary audits.

ASAE 3410

Australian Standard on Assurance Engagements (ASAE) 3410 Assurance on Greenhouse Gas Statements is applicable to assurance engagements on emissions. This standard establishes requirements regarding the auditor’s responsibilities when accepting, conducting and reporting on an engagement to provide reasonable or limited assurance on carbon emissions. This includes all NGER audits as well as ERF audits where emissions are reported, such as offsets reports where greenhouse gases are measured and reported on.

This standard should be used as guidance for auditors when undertaking ERF audits as only some components of this standard will be relevant.

ASAE 3450

Australian Standard on Assurance Engagements (ASAE) 3450 Assurance Engagements involving Corporate Fundraisings and/or Prospective Financial Information is applicable to auditors engaged in safeguard audits. This standard establishes requirements and other explanatory material regarding the reporting on financial information included in, or to be included in, a public or non-public document and the reporting on prospective information prepared for other purposes.

Only some components of this standard will be relevant. They will provide guidance to auditors on undertaking assurance on forecasted information in safeguard audits.

This standard applies to an assurance engagement to provide either a reasonable assurance or limited assurance report, or a combination report, on financial information.

The types of financial information covered by this standard are historical financial information, pro forma historical financial information and prospective financial information (including a forecast, projection, or a prof forma forecast) prepared in respect of a corporate fundraising, or additionally if the financial information is prospective, if it is prepared for another purpose. The financial information may be in respect of one entity or multiple entities.

In this standard, the following types of assurance are permitted on the different types of information:

  • Historical financial information–limited or reasonable assurance
  • Pro forma historical financial information–limited or reasonable assurance
  • Prospective financial information (assumptions)–limited assurance
  • Prospective financial information (basis of preparation)–limited or reasonable assurance
  • Prospective financial information –limited assurance.

The assurance practitioner exercises professional judgement in determining the type of assurance that is appropriate to the type of information and possible in the individual engagement circumstances.

Relevant sections of the standard are, but not limited to:

A96. Projection

A99. Pro Forma Forecast.

Documents on this page Documents on this page

Was this page useful?

LEAVE FEEDBACK
preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only